Market Review: Stock Exchanges Open Lower on Global Economic Concerns and Inflation Worries

Market Review: Stock Exchanges Open Lower on Global Economic Concerns and Inflation Worries

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MARKET REVIEW. The New York Stock Exchange opened lower on Wednesday, still concerned about global economic conditions and the specter of a return to high inflation.

The Toronto Stock Exchange opens lower ahead of the Bank of Canada’s decision.

To (re)consult market news

Stock market indices at the opening

In Toronto, the S&P/TSX lost 103.01 points (-0.05%) to 20,310.75 points.

In New York, the S&P 500 fell by 13.58 points (-0.3%) to 4483.25 points.

The Nasdaq lost 10.86 points (-0.08%) to 14,020.95 points.

The DOW decreased by 93.51 points (-0.27%) to 34,548.86 points.

The loon fell US$0.00 (-0.09%) to US$0.732.

The oil fell by US$0.19 (-0.22%) to US$86.50.

L’or fell by US$6.40 (-0.33%) to US$1,946.20.

The bitcoin lost US$5.00 (-0.02%) to US$25,730.00.

The context

“Investors remain hesitant to buy, after the rise in bond yields and oil prices,” explained Patrick O’Hare of in a note.

“If we add to that the dollar which appreciates, it gives concern as to what the Fed (American central bank) will do,” added Art Hogan, of B. Riley Wealth Management.

After ruling out the scenario of a new rate hike in November or December (no change is expected in September), operators now give it a probability almost equal to that of a status quo (44%).

At their highest for almost ten months on Tuesday, oil prices stabilized on Wednesday, as did bond rates.

The yield on ten-year US government bonds stood at 4.28%, against 4.25% the day before closing.

However, the mood remained risk averse, noted Art Hogan, “at least in the short term. […] Since we started September”, statistically the worst month of the year for equities, “investors have been waiting”.

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Among the few indicators of the day, mortgage applications in the United States fell last week to their lowest level in more than 26 years, despite a slight decline in the average loan rate, according to the American Association real estate credit institutions (MBA).

At odds, Apple retreated (AAPL, -2,45%)after information from Wall Street Journal, that the Chinese government has ordered state agencies and their employees to stop using iPhones. Asked by AFP, Apple did not react immediately.

Aside from Apple, giant tech stocks were subject to profit taking, including Nvidia (NVDA, -3.17%)two weeks after a historic high following still sparkling results.

Modern retreated (MRNA, -1,76%)despite the publication of clinical results showing that the new version of its coronavirus vaccine was effective against the new variant BA.2.86, considered capable of evolving further and spreading more easily than its predecessors.

Canada’s pipeline giant Enbridge gave way (ENB, -5,70%) after the announcement, Tuesday after the stock market, of the purchase of assets from the American energy company Dominion Energy (-0,88%)for a total of US$14 billion including debt.

Supported by the firmness of black gold prices, oil companies were sought after, Chevron (CVX, +0,23%) has ExxonMobil (XOM, +0,48%).

cinema operator AMC (AMC, -20,56%)whose share price is extremely volatile, paid for the announcement of a program to issue 40 million new shares, the proceeds of which will be used, according to the group, to reduce debt and strengthen its cash flow.

Manchester United continued its slide (NYSE: MANU, -3.09%)amid doubts about the sale of the club by the Glazer family, majority shareholder.

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2023-09-06 14:32:28
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